Forum Archive Index - September 2002

["KEITH CLARK" <keithclark@actrix.co.nz>]

Just read your response john, thanks for taking time out of your day to reply.

 

regards

 

Keith

----- Original Message -----

From: John Ascroft

To: sharechat@sharechat.co.nz

Sent: Monday, September 23, 2002 8:27 AM

Subject: Re: [sharechat] 21st Century Academy and Jamie McIntyre

Doing the easy one first.....

 

If you establish an account with an online broker, like Access or ASB Securities, then your money is held in a personal bank account (eg BNZ on call for Access). This even pays interest while you wait to invest, and is as safe as any other bank account (if they go through we'll have worse problems than a share market drop).

 

Of course, once you invest your money in shares of your choice, then you are the mercy of the markets.

 

I imagine that if you establish an account with a traditional full service broker then he will hold any money due to you in a trust account which would be about as safe as a lawyers trust account, generally though, one doesn't leave money in a brokers account, instead paying for shares as they are bought and receiving the proceeds when they are sold.

 

Good luck